Enforcement Directorate Probing Several Cryptocurrency, Digital Currency Fraud Cases: MoS Finance

The ED has attached, seized, or frozen proceeds of crime amounting to Rs 936.89 crore as on January 31, 2023.

By Press Trust of India | Updated: 4 April 2023 12:35 IST

Enforcement Directorate Probing Several Cryptocurrency, Digital Currency Fraud Cases: MoS Finance

Photo Credit: Reuters

Crypto assets are currently unregulated in India

Highlights

ED said necessary action as per provisions of PMLA has been taken
MoS for Finance said one show cause notice to WazirX has also been issued
The minister said the virtual digital assets have potential for misuse

Enforcement Directorate is investigating several cases related to cryptocurrency/ virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering, Parliament was informed on Monday. In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the virtual digital assets have the potential for criminal misuse.

"Directorate of Enforcement is investigating several cases related to crypto currency/ virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering," he said.

Necessary action as per provisions of Prevention of Money Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement (ED), he added.

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"As on January 31, 2023, proceeds of crime amounting to Rs 936.89 crore have been attached/seized/freezed, five persons have been arrested and six Prosecution Complaints (PCs), including one supplementary PC have been filed before the Special Court, PMLA in these cases," the minister said.

Further, under Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs 289.28 crore have been seized.

The minister said one show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its Directors under FEMA for transactions involving cryptocurrencies worth Rs 2,790.74 crore have also been issued.

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Crypto assets are currently unregulated in India. Frauds relating to crypto are dealt with under extant laws against fraud and cyber crime.

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